Aside from touching upon which realm a person’s sins are to be reckoned with
(either here on earth, or in the Soul World) and to what degree, there’s also
an existential fact to contend with when discussing reward and punishment.
Which is this: that what we do and who we are leaves a distinct, albeit
subtle, mark on our heart and soul.

Being and doing good allows a certain impalpable and still point of
perfection to nestle and glow in our being. While being and doing bad allows
a certain opaque, murky, noisome, and unctuous blemish to fester in our
being. Of course the degree and strength of either corresponds to the degree
and strength of our goodness or badness, which can only be gauged by G-d.

Now, someone who’s in large part good, who nonetheless has his share of sins,
would have to have his opaque, murky blemishes purged if he’s to draw close
to G-d in the World to Come.
And we learn here that it’s suffering-- of all sorts, in all realms, and in
commensurate measure-- that does it best.

All-encompassing as it is, and touching upon all elements of our being as
it does (oftentimes unbeknownst to us), suffering undoes all blemishes and
utterly scours away at all stains from all angles. Much the way weeping
purges sorrow, and admitting fault unburdens the heart.

Some of it, though, serves best when played out in the physical realm, and
some in the spiritual. And that, too, can only be gauged by G-d.